From: myfirstmillionpod
Traditional advice often suggests “following your passion,” particularly from those who are already wealthy [00:00:28]. However, a more pragmatic approach for achieving financial security and career success emphasizes identifying and cultivating your talent [00:00:30].
Following Talent vs. Passion
The speaker recounts his personal experience of wanting to be an athlete, which was his passion [00:00:34]. However, while attending UCLA, he quickly realized he wasn’t among the 0.1% necessary to make a living as an athlete [00:00:38]. This realization led to a shift in perspective:
- Career Choices: Fundamental principles should guide career choices, especially where you invest your most precious capital: time [00:00:52].
- Sexy vs. Unsexy Industries: Generally, the “sexier” a business (e.g., fashion, arts, movies, modeling, sports), the lower the return on investment [00:00:58]. Unless you receive “incandescent green lights” from an early age indicating you’ll be in the top 0.1%, it’s advisable to pursue a living elsewhere and keep such passions as weekend activities [00:01:09]. For example, 87% of the 182,000 members of SAG-AFTRA (the most talented actors in the world) do not qualify for health insurance because they earn less than $23,000 annually [00:01:29].
The key is to find your talent and commit to developing mastery in it [00:01:42].
The Benefits of Mastery
Developing mastery in a field with a high employment rate (which 98% of sectors enjoy) offers numerous benefits:
- Economic Accruals: Financial security to care for family and support aging parents [00:01:55]. The speaker values his financial security over being a moderately successful tennis player [00:02:16].
- Camaraderie and Prestige: The recognition and connections that come with being highly skilled [00:01:55].
- Relevance and Joy: The sheer joy of mastery will cultivate passion for whatever you do [00:01:57]. The less glamorous the business, the higher the potential return on investment [00:02:37].
Your 20s are an ideal time for “workshopping” different areas to discover what you might be good at, and it’s acceptable to get it wrong [00:02:46]. The speaker’s experience in Investment Banking, where he was “terrible at it,” illustrates this [00:02:49]. The advice is to find what you’re good at, become great at it, and then enjoy your passions (e.g., being a DJ) on the weekends [00:03:00].
Focus as a Core Principle of Wealth
The concept of focus is a cornerstone of the speaker’s “Algebra of Wealth” formula: Focus + Stoicism x Time x Diversification [00:54:40].
- Main Hustle over Side Hustles: If you have a side hustle, consider if you need a new main hustle [00:55:51]. The time and effort spent on a side hustle are often better invested incrementally into your primary career [00:55:56]. A side hustle is only beneficial if it’s an exploration of a new main hustle [00:56:01].
- Specialization: Wealth is typically generated not by a variety of ventures, but by excelling at one thing [00:56:06]. This means cultivating “ninja-like capability” or mastery in a specific area [00:56:10].
- Unsexy Industries: Find a niche in an “unsexy” industry where you can be in the top 10% [00:56:23]. Examples include tax law, installing energy-efficient HVAC systems, or crafting soapstone kitchen counters. Excelling in these areas can provide a very good living [00:56:28].
This focus leads to the ability to help your family, engage in philanthropy, and enjoy a fulfilling life [00:56:42]. Young people often confuse passion with hobbies, but real joy and passion can emerge from achieving mastery and the economic freedom it brings [00:56:55]. While you cannot become great at something you hate, the journey to mastery can foster passion for a previously unconsidered field [00:57:46].